Bank Of America Appeal On Fees Denied

Washington — The U.S. Supreme Court refused to overturn a $28 million assessment against Bank of America Corp. to cover contributions to a government deposit insurance fund.

The justices turned aside an appeal by the Charlotte, N.C.-based bank in a clash with the Federal Deposit Insurance Corp. over a law enacted in response to the savings-and-loan crisis of the 1980s.

Bank of America, the third-largest U.S. bank by assets, sought to avoid a payment to the Savings Association Insurance Fund, which guards against thrift failures.

The $28 million assessment originally was made against Florida's Barnett Bank, now part of Bank of America. The dispute arose after Barnett acquired a group of banks that were paying fees to the savings fund.

The FDIC said Barnett had to continue paying those premiums, while the bank contended it should only have to contribute to the Bank Insurance Fund, to which it already belonged. The bank fund imposed much lower premiums on its members than the S&L fund. A federal appeals court in Atlanta took the government's position, upholding the assessment.

Bank of America argued that the lower court misinterpreted the 1989 law that bailed out the thrift industry. The Supreme Court made no comment in rejecting the appeal.